This applies to new and second hand boats.

Uk boat vat. Value Added Tax VAT is a tax scheme that was established by the EU. Currently non-EU sailors are able to keep their boats in the EU for 18 months continually under the EUs Temporary Importation rules before paying EU VAT. A used boat from anywhere in the EU will now likely have to pay UK VAT on entry to the UK presently 20.

Boats built after 1 January 1985 should have had VAT paid by the first owner or importer and evidence of this should come in the form of a VAT certificate or invoice. 175 in the UK and even higher percentages in some Scandinavian countries. The CA understands that HMRC may be considering changing the interpretation of VAT rules so that after the Brexit transition period all boat owners established in the UK whose boats have been in the EU for the last three years or longer will pay VAT for a second time if they want to bring their boats.

Please note that should these. But this will end after the transition period at. Naturally boats owned by UK residents which are VAT paid and sitting within UK waters as at 23h00 hours on Thursday 31 st December 2020 will be accepted as VAT paid in the UK.

As a consequence VAT is chargeable on boats imported into the EU and on boats purchased and owned by residents of the EU who are using their boat within the EU. At the end of last year Her Majestys Revenue and Customs HMRC announced that owners of boats which have been in the UK under present ownership and were in the EU at the end of the Brexit transition period could avoid paying a second VAT payment if the vessel returned to the UK before 31 December 2021. British recreational boats can travel freely in EU and UK waters without paying customs duties if VAT has already been paid on the boat in the EU.

It is a tax on what is referred to as consumption and is levied by the government of each member state. Owners who bought their vessels in the EU that have not been located in the UK during their current ownership will have to pay UK VAT on their boat if they want to bring it back to the UK even if they have paid EU VAT. This means that the Irish stock of used boats will likely have to seek EU clients or reduce the price significantly if a UK buyer has to pay this extra VAT.

Ad Hall of Fame boat dealer with a full line of Cobalt Boats offering salesservice storage. Boats are either standard rated taxable at 20 or zero-rated taxable at 0 sometimes referred to as VAT free. As previously reported in PBO since 1 January 2021 British ownedregistered boats are only permitted free circulation VAT paid in EU countries under specific conditions.